To understand the importance of table grapes to Peru’s economy and the significance of Peruvian table grape exports to China, we should start by understanding Peru’s position in the global agribusiness export market.

Peru has grown into a major exporter of agricultural products, with US$5.2 billion in exports in 2015 and an agricultural products trade surplus of $1.2 billion.

Among all agricultural exports, non-traditional products accounted for 87% in 2015, or $4.5 billion. Leading the non-traditional category were table grapes, with total exports of $690 million, which ranks Peru as the fifth largest global exporter. Table grapes are therefore of great importance to the Peruvian economy, providing opportunities and jobs in rural places.

Peru’s success with table grapes has been possible due to a joint effort between the public and private sectors. Clear policies have promoted permanent farming entrepreneurship and investment. And technical support from the National Service of Agricultural Sanitation (SENASA) has opened new markets.

Internationally, through joint the efforts of Peruvian private institutions and the role of the Peruvian Ministry of Foreign Affairs and Ministry of Trade and Business, which strengthen international policies and trade with foreign countries, Peru has been growing table grape export opportunities in Asia (a region that in general is growing economically) and especially in China.

Though Peru hopes to supply other varieties such as SugarOne Seedless, Flame Seedless and Thompson Seedless in the future, the Red Globe variety currently accounts for 99% of China’s consumption of Peruvian grapes, with Crimson Seedless making up the other 1%.

During 2014-2015, the top import markets for Peruvian table grapes were China (the mainland China and Hong Kong markets together), followed by the U.S.A. and the Netherlands. Peru also shipped smaller volumes to destinations including the U.K., Thailand, Russia, Canada, Colombia, South Korea, Brazil and Ecuador. Southeast Asian markets are considered promising for future development.

For the 2015-2016, which will soon finish, Chinese imports of Peruvian Red Globes are set to decrease by about 15-18%. Additionally, according to data from Agronometrics, in December and January of the 2015/2016 season, prices of table grapes at wholesale were below the previous three seasons’ prices, though prices did rise in February, as Peru was essentially the only table grape supplier to China at that time.

Overall Peru’s table grape exports increased 5.5% from 270,000 tons to 285,000 tons over the last two seasons. This represents a slowing in growth compared to 30-40% over similar periods in the past, but it is not necessarily a bad development. Rather, it shows us that Peru is turning more mature and in a position now to move to other varieties from the Red Globe that now accounts for 70% of overall production.

In order to hold onto the China market, Peru needs to pay close attention to developments inside China, such as yearly market changes, development of new wholesale markets, new infrastructure facilitating local trade, new commercial platforms and changes to safety laws that provide value, economy and safety to the end consumer.（Compiled by Produce Report）